Chicago Dock Proposes Stock Split Of 200 For 1

June 18, 1986|By David Ibata.

The trustees of the Chicago Dock & Canal Trust proposed a 200-for-1 stock split, a move intended to improve the marketability of the thinly traded issue.

A Chicago Dock spokesman said the action would have no bearing on the trust`s plans to develop its largest holding, 40 acres east of Columbus Drive and north of the Chicago River in the $3 billion Cityfront Center project in downtown Chicago.

Chicago Dock`s portion of the project is zoned for 6,000 apartments, 2,200 hotel rooms and 6 million square feet of offices and retailing.

Chicago Dock is a publicly held, real estate investment trust whose shares are traded over the counter. It was formed in 1962 as a successor to the Chicago Dock and Canal Co., which was founded in 1857 by William Ogden, the city`s first mayor.

Its stock split is subject to shareholder approval at an annual meeting scheduled for Sept. 16. If an affirmative vote of two-thirds of the trust`s 28,919 outstanding shares is obtained, 5.78 million shares would be created.

There are about 600 shareholders, the largest of whom are the New York Public Library, with about 9 percent of the issue; and the University of Chicago, with about 8 percent, according to David R. Tinkham, vice president and assistant treasurer of the trust.

The stock`s price is $4,000 bid and $4,500 asked, Tinkham said. A 200-for-1 split would produce share prices of about $20 and $22.50, respectively. The purpose of the split, Tinkham said, was ``basically to provide for a more efficient market.``

``There is no one we know of`` seeking to obtain a significant position in the trust, Tinkham added. A higher profile for the stock after the split would be ``an unintended result rather than something we`re seeking.``